September 10, 2007 News Archive
Federal Reserve Board: Statement on Loss Mitigation Strategies for Servicers of Residential Mortgages
In a press release, the federal financial regulatory agencies and the Conference of State Bank Supervisors (CSBS) issued a statement encouraging federally regulated financial institutions and state-supervised entities that service securitized residential mortgages to review to determine the full extent of their authority under pooling and servicing agreements to identify borrowers at risk of default and pursue appropriate loss mitigation strategies designed to preserve homeownership.
Follow-up to Statement on Loss Mitigation Strategies for Servicers of Residential Mortgages
Subsequent to the release of the interagency statement on loss mitigation strategies for servicers of residential mortgages on Sept. 4, the Federal Deposit Insurance Corporation (FDIC), in conjunction with the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR), issued a supplemental press release, which encourages servicers to avoid debt-to-income ratios in excess of 50 percent when applying loss mitigation techniques.